Additions based solely on third-party statements inadmissible without cross-examination opportunity.

Additions based on third-party statements are inadmissible without allowing cross-examination. The ITAT ruled that a third-party statement or document cannot justify an addition under section 69A without giving the assessee a chance to refute and cross-examine the source. The assessee's self-disclosure to the Settlement Commission, lacking corroborative evidence, cannot support an addition. In this case, only a letter filed before the DCIT/Settlement Commission existed, with no additional evidence. The assessee was not given the opportunity to cross-examine the source of the letter, leading to the unsustainability and deletion of the addition. .....

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